Nowadays, more than ever before, the processes of human resource management (HRM) are expected to play a role in building the competitive edge of a company. This article argues that human resource development (HRD) can give a major contribution to competitiveness when it is employed for creating and sustaining the internal capabilities of an organization. With the help of theoretical discussion and qualitative research, the article builds a framework for capability‐driven HRD, which implies that clarity, integration, involvement, and evaluation are the critical characteristics of managerial practices when striving for the adaptation of the capability approach. The framework offers a tool for practitioners to assess the abilities of their organizations to utlize the potential of HRD in reaching strategic goals.
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